Though the SJD had earlier demanded Vatakara or Wayanad for contesting, the party settled for Palakkad in the bilateral talks held with Congress leaders here.
Palkkad is now a sitting seat of CPIM's M B Rajesh, where he defeated Satheesan Pachani of Congress in 2009.
Talking to reporters, Veerendrakumar said SJD would announce its candidate after a meeting of the party's parliamentary board tomorrow.
"We have agreed to accept Palakkad seat in the larger interest of the UDF and the party is confident that the coalition would sweep all the 20 seats in the state, especially in view of the changed circumstances with the RSP quitting the LDF," he said.
Veerendrakumar, who was in the LDF for long, parted ways with the coalition on the eve of the 2009 LS polls after CPI(M) rejected JD(S)'s demand for Kozhikode seat to contest.
The JD(S) faction led by Veerendrakumar later formed SJD and became partner of UDF in 2011 assembly polls. The party has a minister in the Oommen Chandy Cabinet.